March 6, 2012
Daily commentary, current portfolio structure and history follow.
Please direct questions and comments to:
Drach Market Research
2910 Kerry Forest Parkway D4-210
Tallahassee FL 32309
Tel. (850) 576-2680
E Mail DrachMkt@aol.com
Position Changes: None.
Major movements (+ or – one point or more among holdings): Harley Davidson -1.36, 3M =2.11, Suncor Energy -1.71, United Technologies -1.90.
Basic Summary (positions itemized after daily commentary)
Relative performance (market to market) vs. S&P 500 since initiation
This Portfolio Model + 207%
S&P 500 + 158%
Portfolio model initiated 5/5/95, archived and marked to market daily.
Initial S&P 500 level 520.12. Initial portfolio value $520,120.00
Current portfolio value $1,600,388.29, gain 207.70%
These results are reflective as to capital capture and market price of current holdings, itemized below. They do not include cash dividends, interest earned on cash balances, transaction costs, or anything else.
Current Stock vs. Cash Allocation
$1,018,961.13 (64%) stock. $581,427.16 (36%) cash equivalents.
Summary of Closed Positions
Total Positions 459 Average Position Profit 413 (89.97%) Percentage + 7.19% Loss 46 (10.03%) Days Held 220 Even 0 ( 0%) Annualized + 11.93%
2011 was among the most volatile years in market history. Probabilities suggest that volatility would subside in 2012, yet a continuation of the January/February gradual ascent was even more unlikely. Much speculation as to the cause of today’s rally has fallen on Greece and China (neither story new), yet today’s move would not have surprised us absent of any headlines. Internal pricing dislocations were suggestive of a normalizing event.
Despite today’s move, the S&P 500 has gained nearly 7% for the year (on track for a 45% yearly return). Additional volatility can be expected, regardless of headlines, and this portfolio could add additional positions in the coming weeks.